1. For calculation gratuity, one month is taken as 26 days (after deducting the 4 non working Sundays) while for calculating anything else a month is always considered as consisting of 30 days. Besides the obvious increase in the final gratuity amount due to using 26 days instead of 30 days, is there any specific reason for this?
2. For calculating gratuity, the employee's last drawn salary will be considered for calculation right? Even if he started with a low salary and has been getting increments through the years. His salaries for each successive years will not be considered for calculation?
One input:
The formula for calculating gratuity is: Gratuity = Monthly Salary/26 x 15 days x No. of yrs. of service
Two queries:
ReplyDelete1. For calculation gratuity, one month is taken as 26 days (after deducting the 4 non working Sundays) while for calculating anything else a month is always considered as consisting of 30 days. Besides the obvious increase in the final gratuity amount due to using 26 days instead of 30 days, is there any specific reason for this?
2. For calculating gratuity, the employee's last drawn salary will be considered for calculation right? Even if he started with a low salary and has been getting increments through the years. His salaries for each successive years will not be considered for calculation?
One input:
The formula for calculating gratuity is:
Gratuity = Monthly Salary/26 x 15 days x No. of yrs. of service
(Here, monthly salary means Basic Salary + DA)
This formula is easy to remember.
yeah this formula is easy!!! Thanx for sharing...
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